Bank News

• Discovers UK Problems Lead to $84 Million Loss in Quarter
  Discover Financial Services reported today a net loss in its fiscal fourth quarter of 2007 of $84 million, partially due to a $391 million impairment charge related to its Goldfish card in the United Kingdom. Discover earned $186.5 million in the fourth quarter of 2006. For its full fiscal year 2007, Discover reported net income of $561 million, without the impairment charge. Card receivables in the U.S. totaled $48.2 billion, up 5 percent from a year ago. The managed credit card net charge off rate in the fourth quarter was 3.84 percent, down 15 basis points from the same period a year ago. The 30-day delinquency rate was 3.59 percent, a rise of 20 basis points from a year ago. Volume on Discover’s payments network in its fourth quarter reached $25 billion, up nearly 28 percent. For the year, payment volume totaled $91.7 billion, up 25 percent from fiscal 2006. Discover increased its provision for loan losses to $339.9 million, up nearly 42 percent from the same period a year ago. The increase was due to a return to a more normal level of bankruptcies following the decline in 2006, and a higher number of loans on the books, Discover reported. The international card division reported a pretax loss of $423 million in the quarter, including the impairment charge. The fourth quarter charge off rate was 6.65 percent, up 85 basis points from a year ago. The managed 30 day delinquency rate was 5.25 percent, up 67 basis points from a year ago.
• PR - RentBureau Data Added to SelectRent
  Atlanta-based RentBureau, the first national online repository of rental payment histories, has aligned with RHR Information Services, Inc. to make apartment rental payment histories available as part of SelectRent, RHR’s comprehensive residential screening service, announced Bill Garrity, RentBureau, senior vice president of Member Services. Through its alliance with RentBureau, multifamily owners and managers using SelectRent will have access to over three and a half million rental payment records available through RentBureau’s National Rental Data Exchange (NRDE) database. “By adding RentBureau’s rental payment data to our reports, we can provide our clients with a wider, more comprehensive view of potential residents’ ability to pay rent, thereby reducing their risk of skips, evictions, and bad debt,” said Tony Karels, National Sales Manager for RHR Information Services. SelectRent is currently used by the owners and managers of over 100,000 apartment units in Minnesota. RentBureau’s rental payment data will be used by Minnesota apartment owners and managers to make informed leasing decisions that will improve the value of their properties,” said Garrity. “RHR Information Services recognizes that previous rental histories are a great predictor of future rental payments.” RentBureau is the first national system providing apartment owners and managers with accurate and current rental payment histories of apartment residents and applicants. Every 24 hours, RentBureau automatically and securely collects resident rental payment information from its members’ existing property management software. RHR Information Services is a leader in pre-employment and residential background screening services in the Midwest marketplace.
• PR - TSYS Announces Update on Spin-Off from Synovus
  Columbus, Ga.-based TSYS (NYSE:TSS), one of the world’s largest providers of outsourced payment services, today announced that TSYS shareholders as of the close of business on Dec. 17, 2007 will receive $3.0309 per share, which represents the pro rata portion of the previously announced one-time special cash dividend of $600 million to be paid in connection with the spin-off to Synovus’ shareholders of the shares of TSYS stock currently owned by Synovus. This per share amount is based on the number of TSYS shares outstanding as of the close of business on Dec. 17, 2007. The dividend will be paid on Dec. 31, 2007. As previously announced, TSYS has been advised that, in connection with the spin-off, a “when-issued” public market for TSYS common stock on the New York Stock Exchange (NYSE) is expected to begin on or around Dec. 19, 2007, and continue through the distribution date under the symbol “TSS wi.” The “when-issued” public market will be a market for shares of TSYS common stock that will be distributed to Synovus shareholders on the distribution date. In addition, TSYS expects to be quoted "ex-dividend" on the NYSE beginning on or around Dec. 19, 2007. ]Any holder of TSYS common stock who sells shares of TSYS (which currently trades on the NYSE under the symbol “TSS”) in the “regular way” market before the date "ex-dividend" trading begins will be selling the entitlement to receive the special cash dividend and regular quarterly cash dividend. Holders of TSYS common stock are encouraged to consult with their financial advisors regarding the specific implications of selling TSYS common stock before the date "ex-dividend" trading begins.
• PR - Foreclosures Rise 68% from Year Ago
  RealtyTrac, an online marketplace for foreclosure properties, today released its November 2007 U.S. Foreclosure Market Report, which shows a total of 201,950 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported during the month, down 10 percent from the previous month but still up nearly 68 percent from November 2006. The national foreclosure rate for the month was one foreclosure filing for every 617 households. “The 10 percent drop in November is the first double-digit monthly decrease we’ve seen since April 2006,” said James J. Saccacio, chief executive officer of RealtyTrac. “This could indicate that foreclosure activity has topped out for the year, but the true test of whether this ceiling will hold will come at the beginning of next year — when we anticipate that a seasonal surge in foreclosure filings and another possible wave of resetting mortgages could place further pressure on the housing market." Nevada, Florida, Ohio post top state foreclosure rates With one foreclosure filing for every 152 households — more than four times the national average — Nevada continued to register the nation’s top state foreclosure rate for the 11th straight month. A total of 6,694 foreclosure filings were reported in the state for the month, up 1 percent from the previous month and up 167 percent from November 2006. Florida’s November foreclosure rate of one foreclosure filing for every 282 households ranked second highest among the states — up from the state’s ranking of third highest the previous month despite a 3 percent month-to-month decrease in foreclosure activity. A total of 29,238 foreclosure filings were reported in the state for the month, up 212 percent from November 2006. Foreclosure activity in Ohio was down nearly 6 percent from the previous month, but the state’s foreclosure rate of one foreclosure filing for every 307 households still ranked third highest among the states — up from fourth highest the previous month. A total of 16,308 foreclosure filings were reported in the state for the month, an increase of nearly 99 percent from November 2006. Other states with foreclosure rates ranking among the nation’s 10 highest were Colorado, California, Michigan, Georgia, Arizona, Indiana and Illinois. California, Florida, Ohio report highest foreclosure totals A total of 39,992 foreclosure filings were reported in California in November, the most of any state despite a 21 percent decrease from the previous month. The state’s November foreclosure activity was still up nearly 108 percent from November 2006, and the state’s foreclosure rate of one foreclosure filing for every 325 households was 1.9 times the national average and fifth highest among the states. Florida documented the nation’s second highest state foreclosure filing total in November, and Ohio documented the third highest total. Other states with foreclosure filing totals among the nation’s 10 highest were Texas, Michigan, Georgia, Illinois, Nevada, Colorado and New York. Top metro foreclosure rates California cities accounted for five of the nation’s top 10 metro foreclosure rates in November, one fewer than in the previous month. Stockton, Calif., took the top spot, with one foreclosure filing for every 99 households — more than six times the national average. Modesto, Calif., took the No. 2 spot, with one foreclosure filing for every 104 households, and Merced, Calif., took the No. 3 spot, with one foreclosure fi